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2017 (6) TMI 803 - AT - Central ExciseInterpretation of statute - meaning and scope of the expression “place of removal” employed in the definition of “input service” under Rule 2(l)of CCR,2004 - CENVAT credit - input services - GTA service (outward freight) - place of removal - manufactured goods are cleared and delivered at the place of buyer - Held that: - taking note of Rule 5 of Valuation Rules, 2000 it is observed that the ‘place of removal’ and the ‘place of delivery’ are distinct places and the freight charges incurred from the place of removal to the place of delivery has to be excluded from the assessable value of the goods - where freight charge is incurred in delivery of the goods by the manufacturer, ‘place of removal’ invariably has to be the place from where goods are ultimately sold by the manufacturer. No doubt, by virtue of Rule 2(t) of CENVAT Credit Rules, 2004 the meaning of expression not defined therein has been borrowed from the Central Excise Act and the Rules made thereunder, but it has to be read in the context in which it has been used. Even though the meaning of place of removal has to be considered to be factory gate, however, the Courts while interpreting the meaning of ‘input service’ laid emphasis on the condition of sale so as to ascertain whether the services rendered by the assessee was in relation to delivery of the manufactured/finished goods at the place of the buyer. In most of these appeals, no specific finding has been recorded analyzing the evidences as to whether sale of the manufactured goods is at the factory gate or at the premises of the buyer as per the agreement for sale, purchase Order, invoice etc. - Thus, all these appeals need to be remanded to the original authority to examine the said aspect and then consider the eligibility of CENVAT Credit on outward freight (GTA services) - appeal allowed by way of remand.
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